China Plays Duplicitous Game With Online Gamers

Chinese state officials are reportedly planning to issue new rules to combat “undesirable” elements associated with online gaming. It’s just the latest mixed message coming out of the country’s government with regards to this market.

However, all this contributes to a mixed message, because the Chinese government itself is a major investor in online games. As I noted last November, it’s deeply involved in “the China Recreation District,” (pictured above) a public/private partnership that’s currently building a 40-square-mile office/recreational park in Beijing devoted to online worlds. HiPiHi, a sort of Chinese version of Second Life, is one of the country’s most prominent Internet startups. Reuters’ report leaves the impression that the government is a monolithic entity uniformly opposed to online games. As with most things they’re involved in, however, the reality is clearly more complex, with different Party factions jostling with each other for a stake in one of the country’s leading industries — and its identity.